High supply creating attractive opportunities in ABS

This report highlights the attractive opportunities emerging in the European Asset-Backed Securities (ABS) market due to high supply. Key insights include:

• Elevated issuance volumes, driven by banks seeking capital relief, have widened spreads, creating strong risk-adjusted value in ABS.
• European auto loan ABS is particularly appealing, with fast de-levering, potential upgrades, and short spread duration.
• The current supply/demand imbalance provides opportunities to capitalize on mispriced bonds without undue credit risk.

For a comprehensive analysis of investment strategies and market dynamics, download the full report.